by Michael L. Diamond, Asbury Park (N.J.) Press

by Michael L. Diamond, Asbury Park (N.J.) Press

TOMS RIVER, N.J. -- Some homeowners on the New Jersey Shore, constrained by age, money or impatience, have decided to put their homes on the market and sell, even if it means taking a steep loss. Their decision in the wake of superstorm Sandy has attracted a few deep-pocketed investors, who have swooped in, banking on the Shore's recovery.

It sets the stage for the free market to work itself out as it often does after natural disasters. But there is a major stumbling block. Investors who want to take the risk will have to do it on their own. Lenders, who, like their borrowers, aren't sure about building standards and insurance rates, aren't offering mortgages for those homes.

"There's opportunity for people who see them as opportunities," said Lisa English, an agent with Keller Williams Realty in Shrewsbury, N.J. "Otherwise, it's a just a huge headache and mess."

Terry Weber helped his father build a modest home in 1950 in Toms River, N.J., first providing a weekend getaway, then a year-round home, where he and his family could pursue their passion of sailing and love of the water.

The home, however, was washed out by a flood during Sandy. And as much as Weber and his wife who are living with their daughter in Freehold Township, would like to return, he is 85, he isn't sitting on a fortune and he thinks his best option is to sell.

"We'd like to (live) by ourselves, and we'd like to be here," said Weber, standing inside the home, a former wooden Army barrack that was rebuilt on the land. "The way it looks now, we're not going to be here."

In 1978, Weber elevated the home on four-foot pilings , which protected it against the fierce 1992 nor'easter. But it was defenseless against October's superstorm Sandy.

When Weber returned after the storm, he found his home had had as much as four feet of water inside. He has received $30,100 from his FEMA-backed flood insurance policy.

"(It is) not going to be enough to rebuild the house, so now we're thinking about selling as is," he said. Weber has contacted a real estate agent, but doesn't yet know what the property could fetch. The property is assessed for $183,700, but the land alone is assessed at $115,300, according to property records.

'Value is in the land'

Sandy is on target to be the nation's second-costliest tropical storm system, trailing only Hurricane Katrina in 2005. It has left 22,000 homes uninhabitable, according to a report last week by the National Hurricane Center.

And owners of those homes face obstacles in their effort to rebuild. New homes and houses with 50 percent or more damage from Sandy will need to be elevated above new FEMA flood maps or likely face exorbitant premiums for flood insurance.

While contractors have the material and know-how to build homes to withstand hurricanes, middle-class homeowners in particular aren't sure whether they will have enough money - from insurance, loans, grants and their savings - to pay them.

Charles and MaryAnn Jobes, who have lived in their home in Brick, N.J., for 39 years, decided shortly after Sandy struck to sell their home, listing it for $99,900. Their real estate agency, Weichert, found no reason to gloss over the home's deficiencies.

"VALUE IS IN THE LAND," a description of the property on the company's website says. "This home sustained severe damage from hurricane Sandy. Home is being sold as IS. The interior has been gutted down to the studs. All Permits, Demo and Remediation responsibility of the buyer."

For Charles Jobes, 62, the decision to sell got easier as the weeks went by.

They had been thinking in recent years of relocating to an age-restricted community inland. The fury of Sandy removed any doubt. Jobes, in Virginia last week driving home from a trade show in Tennessee, calculated that he probably would lose $100,000 in the sale. But he said it was worth their peace of mind.

They have since moved 20 miles inland.

"We were just a young couple. It was what was available that we could afford at the time. It wasn't like we were big water people," Jobes said. "They're going to rebuild and go back there."

Searching for deals

Real estate agents say there are some early signs Jobes is right as investors have begun searching for deals.

Jacob Boudreaux, 28, lives in one of the few homes in Union Beach, N.J., to survive Sandy intact. He said he and a friend recently bought two properties in Union Beach. He declined to disclose the price, but he said it was for about two-thirds of what the homes were appraised for before Sandy.

Boudreaux figures there is little risk in his investment. He can sell the property to a developer. He can build a new, storm-proof home and sell or rent it. Or, if, say, New Jersey buys out property owners, he can at least break even.

All he needs is some clarification on building specifications, and patience on everyone rebuilding.

Buyers may have a tough time convincing a bank to lend them money for a mortgage since the new flood zone building standards and insurance rates have yet to be finalized. Any deals, for now, are strictly cash.

It has kept an anticipated swarm of investors at bay. And it has some long-time residents wondering how quickly the Shore's homes, post-Sandy, will be rebuilt.

"If investors can't borrow money without having some insurance in the event of the (flood) loss, I don't see them coming in with large amounts of money," said Surf City, N.J., Mayor Leonard Connors. "I see that being a hindrance for the market."

There was a time even as recently as four months ago when Weber's modest property would have commanded big money from a buyer hoping for a waterfront home, the chance to replicate the life Weber had enjoyed for 62 years.

"I never planned to sell it," Weber said of his home. "I planned to give it to the kids. ... It all changed because of the storm."